EUR / USD bounce from 1.1700 loses steam just before 1.1800

• EUR / USD bounces from 1.1700 and consolidates below 1.1790.
• The euro cuts last week’s losses in a more optimistic market session.
• Below 1.1840, the EUR / USD pair is still negative: Rabobank.

The euro-dollar has seen a solid recovery on Monday, driven by better market sentiment, to erase most of last week’s losses. The pair appreciated almost 0-6% on the day, rebounding from lows near 1.1700, to consolidate just below 1.1790 during the last US trading session.

Euro cuts losses driven by market optimism

The common currency traded more firmly on Monday, as market optimism hit the safe-haven US dollar. The appetite for risk prevailed Monday, after US House Speaker Nancy Pelosi suggested Sunday that a fiscal stimulus package could be introduced before the presidential election. Beyond that, pharmaceuticals Pfizer reported that a coronavirus vaccine could be ready in the US before the end of the year, further boosting confidence.

In Europe, the president of the ECB, Christine Lagarde, has warned that climate change will have an impact on the currency market. A little earlier, Luis de Guindos, Vice President of the ECB, had pointed out that the recovery of the euro area is losing momentum, although the impact on the euro has been limited.

EUR / USD: bearish below 1.1840 – Rabobank

From a technical perspective, Rabobank’s currency analysis team sees the euro on a bearish note below 1.1840: “From a technical perspective, the EUR / USD price action has been bearish since September, when there was a breakout. below the key trend line. Technicians also suggest that a strong bounce above this trend line, currently around 1.1840, is required to undermine the notion of Wave V below the September 25 low of 1.1612 that will unfold in the coming weeks. In our view, fundamentals are also lining up to take EUR / USD towards 1.16 on a three-month perspective. ”